Group Buy Firm Jumei Achieves Profitability
Tencent Tech, 3/08/13
Leo Chen, CEO of cosmetics vertical group buy site Jumei, said in a March 8 interview that Jumei achieved sales of RMB 2.5 bln in 2012, and predicts sales of RMB 6 bln to 10 bln for 2013. Jumei has already begun to turn a profit, and expects USD 100 mln in net profits this year.
Jumei's offerings are split between its "Mall" platform (http://mall.jumei.com) and its open platform, Chen said. Jumei Mall offers cosmetics either through brand licensing deals or direct partnerships with brands. Where Jumei has not been able to obtain brand licenses, it orders items directly from brand stores while continuing in its efforts to obtain licensing. Jumei's open platform offers shoes, handbags, and similar products. Jumei requires merchants seeking to set up shop on the platform to have a flagship storefront on Alibaba Group's B2C e-commerce site TMall, in order to ensure that merchants on its open platform are at least as credible as those on TMall.
Chen added that 10% of products sold through the site are brands developed by Jumei in partnership with brand owners. By the end of 2013, Jumei expects this to increase to 20%.
Keywords: Internet profit Jumei Leo Chen group buying
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